Johns Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month

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John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: 

1. John’s purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash. 

2. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John’s account was credited by the supplier. 

3. Merchandise costing $2,800 was sold for $5,200 in cash. 


Required: 

Prepare the necessary journal entries to record these transactions.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1260481952

10th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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